Alameda wallet under liquidator control incurred $11.5M in losses
The liquidators of Alameda Research have reportedly incurred at least $11.5 million in losses since taking control of Alameda's trading accounts.
Over the past two weeks being under Liquidator control, the account incurred significant losses:
— Arkham (@ArkhamIntel) January 16, 2023
Largest single liquidation: $4.85M
Total liquidated amount: $11.5M
Preventable losses: $4M+
Arkham express that the account ending in 0x997 initially had a short position of 9,000 Ether approx $10.8 million against the collateral of $20 million in USD Coin and $4 million in DAI approx $15.2 million when the liquidators first took control.
The account's current value now stands at $1.1 M short Ether against a $1.4M USDC net balance of $300k.
According to Arkham the most recent development in a series of market movements that have busted multiple Alameda positions left open after bankruptcy.
Alameda wallets removed $7 million in USDC and $4 million in DAI from the decentralized crypto lending platform Aave to a separate Optimism L2 account on Dec 29 around 30 hours after liquidators began moving assets out of Alameda wallets.
This removal of funds is believed to have placed the position at a high risk of liquidation of $11.4 million of USDC being sold off to liquidation bots on Optimism while the Aave treasury took another $100,000 in USDC as liquidation tax.
Arkham said that if liquidators had used a function to immediately close the position by selling off collateral instead of pulling collateral from the wallet at least $15 million could have been preserved rather than the recovered $11 million.
The liquidators attempted to close a borrow position but mistakenly removed extra collateral, putting the assets at risk of liquidation for nine days the loan was liquidated twice resulting in a total loss of 4.05 Wrapped Bitcoin (WBTC) which will not be able to be recouped by creditors.
